Our DailyMarket Reports

Closing Gold & Silver Market Report – 6/10/2011

6/10/2011 4:14:54 PM By: Robert Davis

MARKETS DROP SHARPLY FOR SIXTH STRAIGHT WEEK - Almost every market made a sharp move down today. All the major stock indices (DJIA, S&P 500, NASDAQ) took a beating today, and were down by about 1.4%. Today marks the end of the sixth straight week of declines in stock markets. This is the longest bear market since 2002. Not even in the midst of the housing crisis, when we saw two of the largest investment firms on Wall Street disappear overnight, did we see a market like this. With QE2 ending, falling manufacturing, falling home prices, disappointing jobs reports, etc., it’s not surprising that the market is in a state of flux. When looking back to 1929 and the great depression, everyone talks about “Black Tuesday,” but the market didn’t find a true bottom until 1932. There was a short recovery period (just like the last few months) and then the real crash, the double-dip, put the economy into free fall. One has to wonder, “Is history repeating itself?”

As QE2 draws to a close, an interesting fact has come to the surface: A new creditor has surpassed China as the largest holder of U.S. debt. The new creditor has been buying up U.S. debt at a frantic pace, and within a month or so will hold about 16% of our total outstanding bonds, for total of just over $2 trillion. Who could possibly have this much money to lend? The new, largest holder of U.S. debt is none other than the U.S. government itself.

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